Not having access to all the docs, I dont think this is plan

They are issuing preference shares (two kinds). Preference shares usually (each will have its own detail) come with some sort of guaranteed payment (like interest on a loan), and get paid ahead of equity, but after senior debt, so are less risky than ordinary shares. Preference shares are also issued with the right (under certain conditions) for them to be converted to ordinary shares.

It looks like the plan is for these preference shares to be converted to ordinary shares before the end of the tax year. So the coupon written into them is pretty irrelevant as they'll be gone. The report also says anyway, Attanasio is not taking interest owed out of the club across any of its loans. So again, suggest no actual payment will be taken anyway.

I think they're doing this as issuing new common stock is more of a ball ache in terms of rules and process. Doing it this way is I think easier for them, and in the context where all relevant parties with a material stake agree, is absolutely fine.

At least this is what I read here. Would need the FD to explain this more clearly. (this does not constitute investment advice.)

Posted By: Under soil heating on October 9th 2024 at 10:07:07

Message Thread

This "explainer" is just a copy and paste from the shareholders' document (NCFC) - norwaay, Oct 9, 07:52:28
- To be honest, the exact mechanics of all this dont matter that much (NCFC) - Under soil heating, Oct 9, 09:53:57
  - I'm fine with getting my 83 shares diluted, considering the alternatives (NCFC) - Kev, Oct 9, 19:20:33
  - And also to Delia and Michael (NCFC) - Old Man, Oct 9, 10:30:44
  - Good summary - not sure about the tax bit though (NCFC) - SimonOTBC, Oct 9, 10:19:53
    - Not so fast....Some financial decisions can be made... (NCFC) - usacanary, Oct 9, 11:01:22
      - Yes, fair enough (NCFC) - SimonOTBC, Oct 9, 11:27:14
  - Hi Mr Attanasio (n/m) (NCFC) - Jumbo1, Oct 9, 10:08:52
  - Agree. But as I said... "explainer" (n/m) (NCFC) - norwaay, Oct 9, 09:55:41
    - It's clearly an area Connor doesn't understand (NCFC) - SimonOTBC, Oct 9, 10:21:26
    - Conner should have come to me! Feel free to copy my post! :-) (n/m) (NCFC) - Under soil heating, Oct 9, 09:57:10
      - 😄 (n/m) (NCFC) - norwaay, Oct 9, 10:00:38
    - ... (NCFC) - Under soil heating, Oct 9, 09:56:40
- Most people will have no real idea what it means (NCFC) - norwaay, Oct 9, 09:45:07
  - VMT (NCFC) - SimonOTBC, Oct 9, 10:24:16
  - Sorry - meant for The Grump (n/m) (NCFC) - norwaay, Oct 9, 09:45:55
- On Monday the U21s played Reading. (NCFC) - Henclrikus, Oct 9, 08:34:50
- Doesn’t he say in one line (NCFC) - Dog, Oct 9, 08:14:29
  - Like most "investors" he assumes the risk but.. (NCFC) - usacanary, Oct 9, 11:09:19
    - I don't think there's any prospect of dividends actually being paid (NCFC) - SimonOTBC, Oct 9, 11:33:08
  - shares are equity, not debt. Dividends are not debt repayments. (n/m) (NCFC) - Tony Martin, Oct 9, 09:08:06
    - I get what Dog is saying. (NCFC) - NxNW, Oct 9, 09:26:00
      - That would depend on the payment terms though (NCFC) - SimonOTBC, Oct 9, 10:28:12
      - Not having access to all the docs, I dont think this is plan (NCFC) - Under soil heating, Oct 9, 10:07:07
    - Think there are PSR considerations as well… (NCFC) - loz, Oct 9, 09:09:38
- Perfectly clear (n/m) (NCFC) - TheGrump, Oct 9, 08:08:53

Reply to Message

In order to add a post to the WotB Message Board you must be a registered WotB user.

If you are not yet registered then please visit the registration page. You should ensure that their browser is setup to accept cookies.